There are interesting developments in the ongoing legal battle between Ripple and the SEC. Ripple has taken a firm stance against the SEC’s final demands for discovery following the complaint. This move, detailed in a new petition, signifies another significant development in the high-stakes legal battle between the two parties.
Ripple’s Response to SEC’s Enforcement Request: Resolving Arguments
As legal proceedings continue, Ripple has formally objected to the SEC’s enforcement request and specifically challenged the SEC’s post-complaint discovery demands. Notably, the SEC has invited Ripple to provide audited financial statements for the years 2022 and 2023. It also aims to compel the disclosure of all post-complaint contracts related to the sale or transfer of XRP to “non-employee counterparties” and to respond to an inquiry about “XRP corporate sales revenues” after the complaint.
Ripple’s objections are based on the timing of these demands, claiming they are untimely. The application emphasizes that the SEC had ample opportunities to pursue most of the discoveries requested during the open fact discovery period but chose not to do so. Ripple contends that the SEC now has no good reason to enforce these demands de facto.
Furthermore, Ripple argues that the SEC’s discovery demands go beyond the scope of the resolution methods and that the information sought is irrelevant to the ongoing legal proceedings. In the response, it points out that the parties had previously litigated the appropriateness of post-complaint discovery and that the SEC did not discuss resolution methods during this dispute. Ripple claims that the SEC should not be allowed to reverse its stance on this issue.
Ripple Emphasizes the Unreasonableness of SEC’s Demands
Adding weight to its objections, Ripple states that the SEC’s demands are unreasonable, highlighting that on November 14, the SEC presented Ripple with nine interrogatories and three requests for production (RFP). In response, Ripple objected in December, citing the closure of discovery, the superfluity of interrogatories allowed under Rule 33, and the irrelevance of some demands related to post-complaint behavior.
Ripple’s resolute response to the SEC’s demands has garnered praise from the XRP community, demonstrating the community’s intense interest and support for Ripple’s legal position. As the legal battle continues, the XRP community maintains its optimism and hopes for a positive resolution to the Ripple-SEC case in 2024.
Ripple’s resistance to the SEC’s discovery demands adds another layer of complexity to the ongoing legal proceedings. The involvement and support of the XRP community indicate a collective expectation for a definitive solution within the coming year. As the legal drama unfolds, stakeholders, investors, and the broader cryptocurrency community will closely monitor developments, aware of the potential impacts on the regulatory environment surrounding digital assets.
